Smart Reasons to Save, Use and Invest Money

Are You Overspending Today Because Of A Future Inheritance?

Always Broke


I have a friend at work who seems to have holes in his pockets!  He is always broke and deep into credit card debt and doesn’t have any equity in his house after paying into his mortgage for over ten years (he keeps refinancing, taking the equity out).

Just this year, he’s bought brand new leather living room furniture, a new expensive washer and dryer, a new zero turn riding lawn mower (so now he has 2 of them in total),a full house backup generator, and well over $1,000 in paintball guns and equipment.  Oh, I forgot that he remodeled his master bedroom, buying hard wood floors and had someone come out to rebuild his deck, oh and bought expensive new bikes for him and his wife.  This is just that stuff that I’ve heard about!

My friend is a clever guy and a peer, so I wondered how we could be so different…  So one day, after his incessant complaining to me about his lack of savings, I asked him why he always spend so much money on new expensive things all the time.

He leaned in close and told me that he plans on inheriting a good chuck of money from both his parents and his wife’s parents.  In fact, he mentioned that his wife’s parents are really loaded.  I hope the expression that reflexively popped on my face didn’t reveal my feeling on his line of thinking…

I think that it’s risky and horrible to overspend today while waiting to receive a future inheritance for these reasons:

  • The parents could give the bulk of the money to charity, leaving my friend a much smaller amount.
  • Some financial disaster could happen and that money could evaporate (think Bernie Madoff or Enron)
  • Some medical problems could eat away at their parent’s money too.
  • Perhaps their parents aren’t as rich as they appear to be.
  • It’s a sucky way to live life waiting for your parent to die to get money, very sad really…
  • Their parents could decide to spend the money, going out in style as they age.
  • You risk becoming your parent’s pets the entire time they are alive.
  • You miss out on trying to establish your own financial empire (lol).
  • You begin to view your parents as an investment instead of your parents.
  • You might be stressed whenever they spend money.

I admit, I envy his lifestyle, and I’m a bit disappointed that I’ll never catch up to him or surpass him financially since he has huge advantages.  That said, I do feel that I’m accomplishing my own financial future by living more within my means and my by financial planning over the years.

So should I hate my friend because he’s overspending today because of a future inheritance?

Naw, I hope the best for him, after all he is a friend first.  I just wish deep down inside I wouldn’t think he was such cold-hearted reptile.  I wonder how long it will take them to blow through their inheritance once the do receive it?

Do you know anyone similar to my friend?  What is their deal?


22 Responses to Are You Overspending Today Because Of A Future Inheritance?

  1. No, I don’t know anyone like that. As for myself, my grandmother is 95 years old. I would expect that I will be retired before I receive any inheritance from my parents. Oh, and my wife’s grandmother is still alive also. I think she is 88. Wouldn’t be a good plan.

    • I agree. I guess my work friend is living live to it’s fullest and then hoping to pay for it later with inheritance. Risky move in my opinion, very much like gambling.

  2. NOT a good idea to bank on a future inheritance, let alone spend based on any future assets from it.

    If you live your life based on your own finances and really expect to get absolutely nothing, you’ll be self-reliant and much better off in the long run.

    • I thnk there would be a level of confidence that you would build up by figuring it out and accomplishing a fortune by yourself, first before inheritance.

  3. I think it’s pretty scary to depend on something that’s out of your control like that.

    As nice as it would be to have someone to take care of me financially, it would never give me the warm and fuzzy because I’ve always been fiercely independent. I won’t turn money away but I certainly would hate feeling trapped by being so dependent on someone like that.

    When someone is in a desperate financial situation, they do desperate things. It’s so sad when people want their parents to die because the inheritance is their lifeline.

    • Yeah, I know what you mean! My friend never comes right out and says that, but some days he sure does act like it…

      In the mean time he’s one of those credit card jugglers where he keeps moving the balances around trying to get the lowest rates…

    • Me too if it works out for them, that’s great. But I would rather build it myself. Yeah, I might not be as rich as them, but I’ll take pride in knowing what I accomplished 🙂

    • If I get an inheritance, that’s great, but I already want to accomplish financial independence first.

      Knowing how to make and save money is better than being given a lot of money because if you don’t know how to hold onto it, you just spend it as quickly as you receive it. Look at many of the lottery winners that are now broke again (or at least not wealthy again)…

  4. That is one thing about coming from nothing, you don’t ever expect anything!

    I have a friend like that too, and I totally don’t get it. Not to mention, his parents are in pretty good shape, so it is quite premature to be spending like there is no tomorrow. You never, ever know what could happen. One parent could die, the other could then remarry and leave all their wealth to the new spouse. There are a million different scenarios. Plus, it is creepy to be counting on someone else’s death for your future.

    The whole mindset is kind of upsetting to me.

    • Me too!

      My friend gets bailed out when he starts to get too deep into financial trouble. He’s almost like a kid that way.

      I know that it’s frowned upon my the author of “The millionaire next door”, but his family seems happy…

  5. It’s nice to receive inheritance money because not everybody has a rich relative to have this kind of perk. However, overspending because you are receiving inheritance money is just plain foolish!

    • I agree, it’s too much like gambling to me…

      I can’t imaging having 2 sets of parent that have money that I could inherit money from. How weird that must be.

  6. Yes, I know most of an entire family waiting for their mother (82) to die. In the meantime they are asking to borrow money like it is going out of style. “Have to help her money grow @1% interest!”. They ask for financing health and college- but think nothing of going on a cruise or taking a road trip to the Napa. Now, even the grandchildren are involved- one borrowing 50,000 to get the 20% down on a house (does that tell you anything?) It is sad. She has permitted it to happen and now asks why certain family members are visiting since, “I don’t think they need anything right now”.
    No one is allowed to grow up. The oldest turns 60 this year and has never been fully on his own salary.
    It is sad for the ones waiting- but even sadder for the parent. She feels both pressured and empowered. For the first time she controls what a certain branch of a family does – from cars to marriage. She will come up with the money for country club memberships and second house taxes to keep everyone in the proper social class.
    Really makes me ill.
    That family is why I live in a different state than the mother. She is my mother and I think she is living in an intolerable situation- but that is her choice now- not mine. I stay away until her health turns and then I fly in to actually help her instead of my wallet. I am no saint. This is a MESS!

    • Nobody realizes the difficulties creates on families if all of the members aren’t trying to be successful. I sounds like you are trying to get ahead or at least not mooch!

      I feel for you and hope things improve for your mom…

  7. You forgot that knowing their son in law is a spendthrift they lock it all away in trusts where he only gets the income, which is nothing compared to the minimum payments he has!